Use Options To Profit From Headlines

One of the things that is great about using a powerful options trading strategy is the

incredible flexibility that it gives.

We are flooded with news and new

trade ideas constantly.

This can lead to big profits as long as you have an options trading strategy in

place that gives you exact entry and exit points. This will prevent you from

taking trades blindly and instead provide you with high probability

trades.

Let’s use the latest Middle East crisis as an example. We all know that during

the month of June 2014 fears of another conflict in Iraq caused some large swings in the price of Crude Oil.

Turn on CNBC or Bloomberg and you heard endless stories talk about how the conflict

could affect energy prices and the stock market as a whole.

So how does one profit from this? The first way would be to trade the Crude Oil futures contract. The problem with this approach is how expensive these

futures contracts are.

Not many traders have the capital to hold a position for any length of time.

Instead, we can use a basic options strategy to profit.

A second way to profit from the change in Crude Oil prices is to use stock options. One of the products that students of Netpicks Options Mastery trade all the time is USO

which is the United States Oil Fund.

It is an ETF that tracks the price of Crude Oil. We used this product to

play both the upside and downside in the price of Crude Oil during the

month of June.

We took two trades and they both ended up winners. Our Active Swing

Trader options trading system identified the exact entry and exit

points on both trades.

You can get a full video recap of these USO trades at this link.

http://is.gd/usotrade

The first trade came on 6/4 and our Active Swing Trader options trading

system gave us an entry point at $37.87. Instead of buying the shares of stock we decided to buy Call Options.

We chose the June 37 Call options and paid $1.05 for each contract which

gave us control of 100 shares of USO at $37 per share until June expiration.

This took a total of $105 for each contract that was purchased. Our

system gave us a target of $38.79 and was hit on 6/12. We sold out of our

call options for $1.83 giving us a profit of $78 per contract or a 74% return on

our money in 8 days.

The second USO trade came on 6/30 and this time is was a play on a

pullback in the price of crude oil.

All you had to do was track the Active Swing Trader system which signaled to

go short at $38.65.

Instead of shorting the shares of stock students bought Put Options.

The July 39.5 Puts for $1.02 or $102 per contract were purchased. This trade gave control of 100 shares of USO at $39.50 until July expiration.

The system gave a target at 37.73 which was hit on 7/10. Students sold

out of the Puts options at $1.86 which gave a total profit of $84 or and 82%

return.

Using the Active Swing Trader Options Trading Strategy allowed us to take

advantage of the news to book profits from the changes in the price of Crude Oil.

We were able to do this with a maximum risk of around a hundred

dollars per contract making it perfect for trader of all account sizes.

If you do have access to more capital all you need to do is add on more

contracts to the trades.

The options on USO are very liquid and can be traded with multiple contracts

without any issues.

We have taken advantage of a powerful Options trading system like

the Active Swing Trader to book profits on the price of a commodity.

We aren’t limited to trading individual equities like Apple or Google. Trading options allows us to profit on stocks,

futures, commodities, currencies, and even bonds if we choose to.

We can control our risk easier than any other product available to traders. This

is why every trader needs to have access to basic Call and Put strategies

as part of their overall portfolio.

Start with a basic Options Trading Strategy and you are well on your way to taking advantage of any event to hit

the markets.

http://www.premiertraderuniversity.com/freeoptionsreversal